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Nio August EV shipments will increase while Xpeng and Li Auto will decrease.stocks go down

Nio was able to increase its electric vehicle shipments in August compared to July. However, rivals Li Auto and Xpeng saw their shipments plummet. EV players continue to face supply chain disruptions from the resurgence of Covid in China and lower consumer demand due to the country’s challenging economic environment.

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Shares of Chinese electric car makers Nio, Li Auto and Xpeng plunged on Thursday after the latter two startups reported plummeting August deliveries.

The shipments of the three companies in August are as follows.

  • lee auto: 4,571 vehicles were delivered in August, down 56% from 10,422 in July. This number is also down 51% year-over-year.
  • Xpeng: 9,578 vehicles were delivered in August, down 16% from 11,524 in July. However, this is a 33% increase over the previous year.
  • Nio: 10,677 vehicles were delivered in August, up 6% from 10,052 in July. This is also an increase of 81.6% compared to the previous year.

Nio was the only company to grow on a monthly basis in August, while the EV startup’s U.S.-listed stock fell more than 8%. Li Motor’s share price fell about 4%, while Xpeng’s fell more than 6%.

The Chinese economy faces many challenges, including the resurgence of Covid-19, which has put major cities such as Shanghai on lockdown. In recent days, China’s tech hub Shenzhen enacted Covid restrictions, and on Thursday the megacity Chengdu went into lockdown.

Some cities may have reopened, but consumer sentiment remains fragile and uncertainty is widespread as a result of China’s ‘no coronavirus’ policy.

Even the world’s second largest economy is facing power shortages affecting electric vehicle charging stations. Last month, Tesla and Nio suspended some of their charging services.

These issues permeate EV sales.

Bill Russo, CEO of Shanghai-based Automobility, told CNBC that the numbers are “due to lingering supply chain issues and being at the premium end of the price spectrum, and as the economy weakens, people are finding it more affordable.” , which is putting pressure on some higher-priced models.”

Last month, Xpeng said it plans to deliver 29,000 to 31,000 electric vehicles in the third quarter of this year. This guidance disappointed investors.

Xpeng president Brian Gu said the guidance reflects the fact that the industry is entering a “relatively late season” and that the Covid situation has led to reduced store traffic.

Yanan Shen, president of Li Auto, said in an earnings call last month that the Covid epidemic had “severely impacted” the company’s supply chain, leaving “disturbances and difficulties”.

Shen also said orders for its flagship sport utility vehicle Li ONE are slowing.

Lee Automobile started deliveries of the new “L9” at the end of August. The company also said he plans to launch and deliver a large SUV called the Li L8 in early November. According to Russo, that could affect sales of Li ONE.

β€œLi has launched major new products in the L9 and L8, which has also impacted consumer demand for the Li ONE. When new products come out, demand for older models often suffers,” said Russo. said Mr.

To stimulate demand, China announced last month that it would extend tax exemptions for the purchase of new energy vehicles until the end of 2023.

Competition in the Chinese electric vehicle market continues to intensify. Xpeng will start taking deliveries of his new G9 SUV in October, alongside new ones from Li Auto, and he plans to launch two new cars next year.

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